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To buy a new house you must borrow $150,000

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January 11th, 2018

To buy a new house you must borrow $150,000. To do this, you take out a $150,000, 20-year, 9% mortgage. Your mortgage payments, which are made at the end of each year (one payment each year), include both principle and 9% interest on the declining balance. How large will your annual payments be? What amount will your normal annual payment be?

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